New Delhi: India will need to produce around 130 million litres of Sustainable Aviation Fuel (SAF) annually by 2027 for a 1 per cent blend and 720 million litres by 2030 for a 5 per cent blend, as per a joint report by FICCI and KPMG. The report, Sustainable Skies – Positioning India as a Global SAF Hub, outlines a framework for enabling India’s aviation sector to decarbonise and lead global SAF production.
According to the report, SAF can reduce lifecycle emissions by up to 80 per cent compared with conventional jet fuel. However, the cost of SAF remains two to five times higher than standard aviation turbine fuel (ATF).
Global context: aviation’s rising emissions challenge
Aviation accounts for about 2.5 per cent of global CO₂ emissions, and without decarbonisation, this share could rise to 20 per cent by 2050. As of 2023, international aviation contributed 58 per cent of total CO₂ emissions from the sector.
Globally, around 120,000 flights operate each day, including commercial, cargo, and private aircraft. In 2024, global air travel reached 9.5 billion passengers, surpassing pre-pandemic levels.
Commercial aviation consumes over 70 per cent of total ATF worldwide, with flights longer than 2,600 km accounting for 50 per cent of emissions, despite representing less than 15 per cent of total flights.
“Sustainable Aviation Fuel has emerged as one of the most viable levers to decouple aviation growth from carbon intensity,” the FICCI-KPMG report stated. “It enables up to 80 per cent lifecycle emission reduction while integrating seamlessly into today’s aircraft, fuel infrastructure, and supply chains.”
India’s aviation landscape: growth and opportunity
India recorded approximately 239 million air passengers in FY2025, making it the fifth-largest aviation market globally by passenger volume.
As of 2025, the country has 163 operational airports, with plans to expand to over 350 airports by 2047, including 50 new airports in the next five years.
Domestic passenger traffic is projected to reach 172–176 million by the end of FY2025–26, growing 4–6 per cent year-on-year.
The report notes that India’s growing air traffic will increase its dependence on aviation fuel, but also offers the scale and feedstock diversity needed to develop a self-sustaining SAF industry.
Global SAF production and trends
Global SAF production stood at 600 million litres in 2023, increased to 1.3 billion litres in 2024, and is projected to double again to 2.7 billion litres in 2025.
Currently, HEFA (Hydroprocessed Esters and Fatty Acids) technology accounts for 95 per cent of global SAF production, making it the dominant production pathway. Despite the growth, SAF represented just 0.3 per cent of total global jet fuel consumption in 2024.
The report cites policy and investment momentum across major economies:
1. The ICAO’s Long-Term Aspirational Goal (LTAG) targets net-zero aviation by 2050.
2. The EU’s ReFuelEU Aviation mandate and the US Inflation Reduction Act (IRA) provide incentives for SAF production.
India’s potential as a global SAF hub
The report identifies five foundational pillars for India’s transition into a major SAF-producing nation:
1. Policy architecture – phased mandates, fiscal incentives, financial de-risking, and feedstock mobilisation.
2. Infrastructure readiness – refinery co-location, airport retrofits, cluster-based SAF ecosystems, and digitally integrated logistics corridors.
3. Carbon market alignment – monetisation through SAF-linked credits, robust monitoring, reporting and verification (MRV), and compliance frameworks.
4. Technology advancement – repurposing ethanol assets for Alcohol-to-Jet (ATJ) conversion, scaling HEFA and Fischer-Tropsch (FT) technologies, and forming global certification partnerships.
5. Export potential – positioning India as a trusted SAF hub with certified clusters and access to premium markets.
“Realising India’s potential as a global hub for SAF will require a holistic systems-level approach — one that integrates strategic policy design, innovative business models, and coordinated industry action,” the report noted.
Economic implications and strategic benefits
A 10 per cent SAF blend in India could offset billions of dollars in annual aviation fuel imports and generate tens of thousands of rural and industrial jobs.
The report highlights that India’s established refining capacity, large bioenergy base, and energy transition policies make it well-placed to scale domestic SAF production.
It adds that developing a local SAF industry could also reduce crude import dependence, enhance rural incomes, and create green industrial value chains.
“Beyond emissions reduction, SAF symbolises the convergence of industrial policy, energy security, and climate leadership,” the report stated. “It bridges India’s aviation ambitions with its net-zero commitments.”
Outlook and challenges
While India holds potential to lead in SAF production, meeting the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) targets will require coordinated action.
India must produce 53 million litres of SAF for a 1 per cent blend by 2027 and 290 million litres for a 5 per cent blend by 2030 for international flights alone.
The high production cost, limited supply chains, and feedstock aggregation remain near-term challenges, but the report notes that the economic and strategic case for SAF remains strong.
